Essential Insurance Policies Every HVAC Company Needs

Whether serving homeowners, landlords, businesses or other clients, the daily operations of your HVAC business may include significant risks and exposures. Working with heavy machinery, sharp tools, motor vehicles and hazardous materials, all potentially in enclosed spaces and at other parties’ locations, can lead to accidents. Given the possible financial and reputational ramifications of even isolated incidents or errors, appropriate insurance should be a top priority.

What Types of Coverage Do HVAC Companies Need?

There are types of insurance that may be advisable for most in this industry. Consider beginning to assemble your insurance portfolio with the following types of coverage:

• Professional liability insurance—This type of insurance, also known as errors and omissions insurance, can come to your aid if a client or customer accuses you of making a mistake or otherwise providing inadequate services, resulting in their financial losses. In response to possible lawsuits, your coverage could help pay for legal costs and damages.

• General liability insurance—This form of liability coverage focuses on assisting with financial ramifications arising from other parties’ physical losses. This may include helping to pay for medical bills should you be at fault for injuring another party or repair costs if you or one of your employees damage someone else’s property.

• Commercial property insurance—These policies can limit out-of-pocket expenses should your business need to repair or replace its tangible assets (e.g., buildings, equipment and tools) following covered incidents, such as fires, theft and vandalism.

• Business interruption insurance—This type of coverage can help you manage ongoing expenses and financial losses arising from a disruption of your normal operations. This may include replacing the income you would have earned under normal circumstances, as well as maintaining payroll and keeping up with loan payments.

• Workers’ compensation insurance—Legally required in many cases, this type of insurance can make all the difference following employees’ work-related injuries and illnesses. Suitable coverage can help them access medical services and maintain income and may also assist your company with legal expenses should a lawsuit be filed.

• Commercial auto insurance—If your company uses motor vehicles to transport employees to clients’ locations, it is likely required to carry this type of coverage. A suitable policy can ensure you are able to manage losses arising from vehicle-related incidents.

• Inland marine insurance—This type of insurance can provide financial protection for your company’s equipment, tools and other property when transported or stored off-site, such as at a client’s location. This may be crucial, as commercial property insurance often covers items only while on-site at your own business.

• Commercial umbrella insurance—HVAC companies may need to account for significant liability risks, making particularly robust coverage advisable. Commercial umbrella insurance can provide a secondary layer of financial protection, potentially offering additional funds should the limits of other policies be exhausted.

We’re Here to Help

At Insure Insurance, we have over 20 years of experience serving businesses and procuring ideal coverage solutions. Contact us today to get started or to compare tailored quotes from our network of carriers.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.